By Rahul Paith
India’s startup ecosystem has undergone a remarkable transformation over the past decade, with women entrepreneurs playing a pivotal role in this evolution. As the country positions itself as one of the fastest-growing startup hubs globally, the role of women in shaping this landscape cannot be overstated.
Women entrepreneurs are not only diversifying the business landscape but also driving economic growth and societal change. From technology to healthcare, women-led startups are redefining industries, challenging stereotypes, and fostering innovation. The increased participation of women in entrepreneurship is a testament to India’s evolving socio-economic fabric and the growing emphasis on inclusivity and empowerment.
However, despite significant progress, women entrepreneurs continue to face numerous barriers, including access to funding, societal biases, and limited mentorship opportunities. This article delves into the current state of women entrepreneurship in India’s startup space, highlighting key initiatives, challenges, and the road ahead.
Rise Of Women-Led Startups
As of December 2024, India boasts over 73,000 startups with at least one woman director, accounting for nearly half of the 157,066 startups recognised under the Startup India initiative. This surge reflects a significant shift from previous years, indicating a growing acceptance and encouragement of women in leadership roles within the entrepreneurial sector.
In 2024 alone, women-led startups in India raised approximately $930 million across 136 deals, underscoring the increasing confidence of investors in women entrepreneurs.This influx of capital has empowered women to venture into diverse sectors, including technology, personal care, food and beverage, fashion, and real estate. Notable examples include Falguni Nayar’s Nykaa, a beauty and retail company that has redefined online beauty retail in India, and Vineeta Singh’s Sugar Cosmetics, which has gained significant market share in the cosmetics industry.
Government Initiatives Supporting Women Entrepreneurs
Recognising the potential of women entrepreneurs, the Indian Government has launched several schemes to provide financial assistance and skill development opportunities:
- Stand-Up India Scheme: Initiated in 2016, this scheme offers bank loans ranging from Rs 10 lakh to Rs 1 crore to women and SC/ST entrepreneurs for establishing greenfield enterprises in manufacturing, services, or trading sectors.
- Mudra Yojana: This initiative provides loans up to Rs 10 lakh to non-corporate, non-farm small/micro enterprises, with a significant portion allocated to women entrepreneurs.
- Women Entrepreneurship Platform (WEP): Launched by NITI Aayog, WEP serves as a unified access portal bringing together women from different regions to realise their entrepreneurial aspirations.
- SWAYATT Initiative on GeM: Celebrating six years of transformative impact, SWAYATT focuses on facilitating the training and onboarding of last-mile sellers, developing women entrepreneurship, and promoting inclusivity in public procurement.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced measures to boost startups and small enterprises, including doubling the credit guarantee for MSMEs to Rs 10,000 crore, with a focus on women entrepreneurs.
Challenges Faced By Women Entrepreneurs
Despite the progress, women entrepreneurs in India continue to face several challenges:
- Access to Funding: While there has been an increase in funding for women-led startups, they still receive a smaller share compared to their male counterparts. In 2023, women-led businesses received only 5 per cent of the $10 billion raised by Indian startups, marking a decline from 9.6 per cent in 2022.
- Societal Biases: Deep-rooted societal norms often discourage women from pursuing entrepreneurship, leading to a lack of family support and societal acceptance.
- Balancing Responsibilities: Women often juggle multiple roles, balancing entrepreneurial ambitions with responsibilities, which can limit their ability to focus entirely on their ventures.
Empowering Women Entrepreneurs: The Way Forward
To address these challenges and foster a more inclusive startup ecosystem, several measures can be undertaken:
- Enhanced Access to Capital: Financial institutions and venture capitalists should develop tailored financial products and investment strategies that cater specifically to women entrepreneurs.
- Mentorship and Networking Opportunities: Establishing mentorship programs and networking platforms can provide women entrepreneurs with the guidance, support, and connections necessary to navigate the startup landscape successfully. Platforms like DST MATH by the Department of Science and Technology are helping women entrepreneurs in science and technology sectors access mentorship, capacity-building programs, and funding opportunities.
- Policy Support and Incentives: Government policies should continue to evolve, offering incentives such as tax breaks, subsidies, and simplified regulatory procedures for women-led startups.
- Awareness and Sensitisation Campaigns: Societal attitudes towards women entrepreneurs need to shift. Awareness campaigns highlighting successful women entrepreneurs can inspire and encourage more women to venture into the startup space.
Future Looks Promising
The future of women entrepreneurship in India’s startup ecosystem is promising. With increasing support from Government initiatives, financial institutions, and societal shifts, women entrepreneurs are poised to lead the next wave of innovation and economic growth. By addressing existing challenges and fostering an inclusive environment, India can unlock the full potential of its women entrepreneurs, driving sustainable development and societal transformation.
(The author is the CEO, DST MATH)
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